JC Penney plans to get rid of traditional cashiers and checkouts by 2014
In an attempt to cut costs and make customers’ shopping experience more enjoyable, department store chain JC Penney wants to rid of checkout lines, counters and cashiers.
The plan — announced by JC Penney CEO Ron Johnson at a Fortune conference this week — is inspired by Apple’s retail stores, the Financial Times reports.
JC Penney plans to eliminate checkouts at its stores by the end of next year.
Photo from Wikipedia
“You’ll be able to check out anywhere, anytime,” Johnson said.
He said store employees would roam stores with mobile devices attached to credit card readers — an increasingly popular method of payment processing.
The company is rolling out the plan starting next week in the Levi’s retail areas inside 700 JC Penney locations, according to the report. It also plans to introduce self-checkout facilities.
Whether the plans include staffing cuts is unclear.
JC Penney, which has a store in Ann Arbor’s Briarwood Mall, employs 159,000 workers. Founded in 1902, the company operates 1,102 department stores in the U.S. and Puerto Rico.
It launched a new pricing strategy early this year, one based on "everyday best prices" and not sales.
The Texas-based company was valued at about $4.44 billion based on a Friday stock price of $20.27.
Read the full Financial Times report here.
For an in-depth look at mobile payment processing, read an AnnArbor.com report here.
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
Comments
MyOpinion
Sun, Jul 22, 2012 : 2:05 p.m.
Penney's customers are older and credit/debit cards are probably their third choice for payment. Do these mobile stations accept checks or cash? It will be quite telling if Penney's finds abandoned carts filled with planned purchases, which are aborted because of the high tech solution for a decidedly middle-America store.
15crown00
Sun, Jul 22, 2012 : 2:18 a.m.
what a great idea?perhaps by 2014 we'll be rid of J .C. Penny's FOREVER
Robert Granville
Sat, Jul 21, 2012 : 5:12 p.m.
Not surprised. I worked for JCP for the past 5 years and each year brought some new innovation that meant more work for me, more trouble for the customer and made no difference on my measly paycheck. Glad I got out of there when I did.
jns131
Sat, Jul 21, 2012 : 5:48 p.m.
I know a few employees who got better deals at Macy and Sears. Good luck with the new job.
Gramma
Sat, Jul 21, 2012 : 2:55 p.m.
This sounds like a shoplifters dream.
jns131
Sat, Jul 21, 2012 : 5:51 p.m.
Could not agree more.
dexterreader
Sat, Jul 21, 2012 : 2:34 p.m.
I miss my discount coupons and my $10 off any purchase of $10 or more coupons!! I do NOT miss the constant barrage of advertisements in my mailbox!! But .... in all honesty .... I have not purchased a single thing there since the new "marketing strategy" began. And I am even less likely to patronize a business that puts employees out of work. I don't even use the self-checkouts in grocery stores because I don't believe in putting people out of work. JC Penney really needs to rethink its strategy or I foresee major struggles down the road to attract shoppers.
Ron Granger
Sat, Jul 21, 2012 : 1:16 p.m.
"It also plans to introduce self-checkout facilities." This is just a clumsy way of eliminating staff. A number of grocery chains are moving away from self-checkout because most people hate it, and it eliminates the last bit of human element in the shopping experience. With self-checkout, and a store devoid of staff, you might as well just order from Amazon. Who has time to hunt around a store for staff, or sorting through piles for your size? Amazon is going to bury JCP with same day delivery.
15crown00
Sun, Jul 22, 2012 : 2:21 a.m.
When i'm ready to check out at a grocery store i want to check out as fast as possible with little or no contact with a cashier. self checkouts are made 4 me. I love them.
Robert Granville
Sat, Jul 21, 2012 : 5:13 p.m.
People still like to try on clothes so you're getting ahead of yourself.
Carole
Sat, Jul 21, 2012 : 12:14 p.m.
Used to shop at Penney often until they redid and one had to wait at the check out counters for long periods of time to be waited on. I liked it when there were sales clerk in the various departments and a check out counter in each of those areas. If one needed to ask a question or needed assistance, there was usually a clerk familiar with the department who would help out.
15crown00
Sun, Jul 22, 2012 : 2:22 a.m.
used to be. i remember it well.only a memory now.
Arieswoman
Sat, Jul 21, 2012 : 10:38 a.m.
Well good by Penneys and Arbys. I quit both of them some time ago! Will not miss them either!
jns131
Sat, Jul 21, 2012 : 5:46 p.m.
KFC and Big Bog are also gone too. I guess no fast food left at the mall?
Monica R-W
Sat, Jul 21, 2012 : 5:43 a.m.
This is going to go over to retail customers as well as a lead balloon. First they (JCPenny's) eliminate sale prices, now cashiers? No wonder why I don't shop at this store....
jns131
Sat, Jul 21, 2012 : 5:46 p.m.
The only time I shop there is to get a dress for a dance for our daughter. Half price isn't bad. Otherwise, we too hardly shop their either.
JuliaAnnArb
Sat, Jul 21, 2012 : 2:36 a.m.
I'm skeptical. Are they going to have enough people wandering around that you'll be able to find someone? The Apple store is miniscule compared to JCP. I sure hope they station somebody near the childrens' department: they took out the cash register that was there, so you have to go up the escalator, all the way around to where the kids' stuff is, back around to where you got off the escalator to pay, and all the way back around to go down. All in all I've been impressed by the changes in store organization and cleanliness, the Briarwood location used to be a dump.
Will Warner
Sat, Jul 21, 2012 : 1:27 a.m.
As long as price is the overriding consideration in most purchasing decisions, businesses will have no choice but to contain costs. Employees are expensive. If we stopped putting so much pressure on businesses to give us their products at the lowest possible cost, there could be more jobs. But we are not going to do that, are we? No, people will put up with almost any inconvenience in order to save a nickel.
Carl
Sat, Jul 21, 2012 : 12:40 a.m.
They have them somewhat at Urban Outfitters too, my only issue is at times the handheld has had a poor internet connection, like today, where it took like 3 attempts and about 4 minutes for the card to go through.
15crown00
Sun, Jul 22, 2012 : 2:24 a.m.
world of difference between U.O. and J.C.P.
Halter
Sat, Jul 21, 2012 : 12:22 a.m.
You can pay with cash anytime you want -- there are strategically placed lockboxes throughout the store, along with change, bags, boxes, etc. Seriously -- you've never been in a store that does this? Then really, YOU need to get out a bit more. Most electronics stores (including all Apple stores) have been doing this for years. And to you think management is SO inept that they wouldn't notice a thief in their section? Its a different business model, but its one that works in every store that has tried it. Ever been to San Francisco or San Diego? Half their retail stores use this system now. Ann Arborites really ARE resistant to change...good or bad.
15crown00
Sun, Jul 22, 2012 : 2:26 a.m.
So go 2 the "Left Coast" if u like it so much.
gladys
Fri, Jul 20, 2012 : 9:22 p.m.
As someone else noted, how does one pay with cash? Are we to assume that cash sales are no longer possible? How does a customer know that the "handheld device" is legit and not one that a clever thief has rigged up.
catcal
Fri, Jul 20, 2012 : 9:09 p.m.
What's the big deal? Change isn't always bad. High-tech? It's just hand-held versus a computer on a table. I don't see how that will have a negative impact on the customer. Actually having staff out in the departments keeping things stocked and cleaned up, being available to help customers find styles and sizes will be a big plus in my mind. I have always preferred retailers that don't "play games" with discount come-ons. Remember Jacobson's? They just had fair prices for good quality merch, no need for constant mailed flyers, coupons, Kohls-Cash, etc etc etc. Von Mauer is similar. Just because JCP isn't flooding our mailboxes with ads doesn't mean they aren't serious about good prices. I don't think JCP cares about impressing their older, loyal customers. They're trying to improve. Why shoot them down?
fairfield
Sat, Jul 21, 2012 : 12:05 p.m.
I agree with Catcal. I do get discount coupons from the local Kohl store; so many in fact that I never pay the full price. However, when I wanted to buy Ked sneakers at 30% off (the coupon of the week), I could not find my size. And their prices were higher than J.C. Penney's to begin with. I definitely prefer "everyday low prices" and no coupon games.
jcj
Fri, Jul 20, 2012 : 9:43 p.m.
How big will the cash drawer be they carry on their belt? "Remember Jacobson's?" Where are they now? "I don't think JCP cares about impressing their older, loyal customers." They will find out soon enough how much they will miss " their older, loyal customers." Dumbest idea in retail! There are so many contradictions in your post. Remember Jacobson's? They just had fair prices for good quality merch, no need for constant mailed flyers, coupons, Kohls-Cash, etc etc etc What's the big deal? Change isn't always bad.
jcj
Fri, Jul 20, 2012 : 9:05 p.m.
So long Penny's! Another empty store in Ann Arbor.
jns131
Sat, Jul 21, 2012 : 5:43 p.m.
Happened to jacobsons, will happen to Pennys and can't wait to see what Sears does.
xmo
Fri, Jul 20, 2012 : 8:30 p.m.
Dress like a JC Penny Person and carry a card reader and you could become rich! Why not just have scanning device by the exits with a cashier to help you if you need it? Of course, security would need to be there too!
tdw
Fri, Jul 20, 2012 : 8:22 p.m.
That's gonna be their death blow
jns131
Sat, Jul 21, 2012 : 5:43 p.m.
I love Pennys and I love Sears. But i do agree, they lost business when they started that no coupon campaign and said everything is low price. Pennys is signing their death warrant in this totally disastrous scheme of theirs.
Monica R-W
Sat, Jul 21, 2012 : 5:47 a.m.
Pretty much TDW! JCPenny's will soon go the way of KMarts...... If they really want to attract consumers, get rid of the ADD type store set up. Way too many items in one store. Stop trying to be everything to everyone Penny's and focus on a core market!
lynel
Fri, Jul 20, 2012 : 7:33 p.m.
This works at Apple because you're being helped by one of their MANY sales persons. At Penny's are the roaming store employees going to be carrying around various sized bags?
Halter
Sat, Jul 21, 2012 : 12:17 a.m.
Those items are strategically tucked away throughout the store - they just reach under tables and get them.
Billy Bob Schwartz
Fri, Jul 20, 2012 : 7:46 p.m.
Yep...and they will carry around boxes for clothing items and equipment to take off the magnetic protective devices, and a whole lot of other stuff. They will be strong people. My question is, can we go into the back rooms to find one to wait on us?
Hmm
Fri, Jul 20, 2012 : 7:26 p.m.
So what are you supposed to do if you want to pay with cash?
Gramma
Sat, Jul 21, 2012 : 2:48 p.m.
Your purchases cannot be traced with cash.
Cash
Fri, Jul 20, 2012 : 9:06 p.m.
You can pay with me anytime you want. :-) And hey Billy Bob, I am not THAT old!
Billy Bob Schwartz
Fri, Jul 20, 2012 : 7:44 p.m.
Cash? What's that? Is that that papery stuff with funny guys' faces on it? They still use that stuff?
Thomas
Fri, Jul 20, 2012 : 7:32 p.m.
I don't know how JCP will handle cash but the Apple store has hidden locked cash drawers under those big tan tables. I pay cash at the Apple store all the time. I'm sure JCP will come up with something clever as well.
Bones
Fri, Jul 20, 2012 : 6:46 p.m.
I will refuse to shop there. Eliminating employees and then adding work to the ones they keep. Man that is such a fine upstanding company. Maybe they should stop listening to wallstreet execs. Take pay cuts at the top and eliminate waste from the top down. Why is itd always the workers who suffer when the wallstreet buffoons decree it to make more money?
Gramma
Sat, Jul 21, 2012 : 2:47 p.m.
It's called capitalism. People are capital too.
ANTI LIBERAL
Fri, Jul 20, 2012 : 6:46 p.m.
Just what we need, another business eliminating jobs. I for one will not use self check out lanes. My job could be next.
Ron Granger
Sat, Jul 21, 2012 : 1:11 p.m.
Did you read the article, Richard? "It also plans to introduce self-checkout facilities."
Richard Carter
Sat, Jul 21, 2012 : 12:53 p.m.
Did you actually read the short article? No mention of self check out lanes. Just cashiers with portable scanners like the Apple store does it.
Umdutchwon
Fri, Jul 20, 2012 : 10:46 p.m.
I find it funny yet hypocritical that you make that first statement while having your username. If you truly care about the "little people", a.k.a. non-executives, then you should run as far away from your conservative bullies as possible.
Enso
Fri, Jul 20, 2012 : 7:30 p.m.
What, Anti-Liberal? Are you anti-capitalist too? Less workers to pay equals more profit for the executives. If they cut your job, it's to make more money. Them's the breaks. That's capitalism. You should be grateful you had any job for that long.
a2nancy
Fri, Jul 20, 2012 : 6:14 p.m.
When Penney's changed their top personnel and sales strategy, I expected problems--I wrote a 3 page letter but did not send. The local Penney's manager told me to "wait and see". As I was receiving more discount cards and coupons from all Penney's competitors--Macy's, Kohls, Sears, etc.--Penney's was ending theirs. The customer is supposed to value their remodeled stores and clever ads over the idea of a discount. I'll bet the average customer is not impressed, and the older, loyal customers will not be impressed with this high tech direction either. They need to poll their customers and listen to them or they will continue to go down hill financially. a2nancy
15crown00
Sun, Jul 22, 2012 : 2:29 a.m.
Never going to happen. They poll their customers and they loose for sure.
M
Fri, Jul 20, 2012 : 5:55 p.m.
So they're eliminating sales and a central place to check out, and that's more convenient for customers? Please...
Klayton
Sun, Jul 22, 2012 : 7:35 p.m.
I think mobile checkout is a great idea! You can "check out" as you shop...so when I find a shirt and a sales person walks by...I just scan it, scan my card...done. I can keep shopping or leave. This is a smart 21st Century idea. Of course it means that we need salespeople with digital and mobile computer skills and since the schools don't seem to want to teach these skills, it may be hard to find people prepared to take on these new mobile jobs.
jns131
Sat, Jul 21, 2012 : 5:39 p.m.
Make it easier for them to hide and us to find them. Going to suck if they lay off half. I just heard Michigans unemployment just went up a percentage. Good luck with this idea.
Andrea Zastrow
Fri, Jul 20, 2012 : 6:54 p.m.
It's already hard enough to hunt down a salesperson.